Capital gains tax account scheme to save taxes?

#1
You can save taxes on capital gains on real estate, shares, gold, property etc by putting them in a special capital gains account. These accounts can be opened at only specified psu banks.
I wonder shares means is it applicable to gains from stock trading ? short term gains? or is it applicable primarily for real estate selling?
Any amount in these accounts can only be used for similar purchase within specific time and will not be taxed.
Can someone give details here? Thanks
http://www.incometaxindia.gov.in/Pages/rules/capital-gains-accounts-scheme.aspx
https://www.sbi.co.in/portal/web/personal-banking/sbi-capgains-plus-capital-gain
 

canikhil

Well-Known Member
#2
You can save taxes on capital gains on real estate, shares, gold, property etc by putting them in a special capital gains account. These accounts can be opened at only specified psu banks.
I wonder shares means is it applicable to gains from stock trading ? short term gains? or is it applicable primarily for real estate selling?
Any amount in these accounts can only be used for similar purchase within specific time and will not be taxed.
Can someone give details here? Thanks
http://www.incometaxindia.gov.in/Pages/rules/capital-gains-accounts-scheme.aspx
https://www.sbi.co.in/portal/web/personal-banking/sbi-capgains-plus-capital-gain
1. You don't save taxes by putting money in capital gains tax account. You just defer it. You get the exemption only if you utilize the money as provided by the Act. Like if you have sold a residential house, then you need to reinvest the gains in buying a house or constructing one. You park money in this account only if you are unable to reinvest before filing of tax return.

As you have also mentioned, that this money has to be used within a specific time. Failure to do so, would make the money taxable.

2. This will include only long term capital gains. So with respect to shares, it would include only unlisted shares.
 

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